Empowering new developers: The Park Lofts success story 

Client background

Julian Walters, founder of Eminent Development Corporation (EDC), is dedicated to advancing affordable housing. EDC collaborated with Lutheran Social Services (LSS) to develop Park Lofts in Madison, WI, a 44-unit multifamily housing development to support multiple marginalized communities. 

Business challenge

Park Lofts is a multifamily housing project that includes a mix of studio and two-bedroom apartments. Among these, 11 units are specifically set aside for youth aging out of foster care, addressing a critical need for stable housing and essential resources for this vulnerable demographic. Statistics also indicate that 20% of these individuals become homeless at age 18, stressing the need for more housing options. 

As a first-time developer, Julian Walters faced numerous challenges in navigating the complexities of the development process. He required comprehensive guidance on funding applications, securing investment partners, conducting due diligence and managing the closing procedures. The project also encountered hurdles such as obtaining HUD approval due to the inclusion of project-based vouchers, which added layers of regulatory requirements and complexities to the process. Additionally, Julian's status as a new developer presented financial obstacles, as his limited balance sheet restricted access to a wider network of equity investors. Despite these challenges, the innovative approach taken with Park Lofts reflects a commitment to addressing social issues through purposeful and sustainable development. 

Baker Tilly’s strategy and solution 

From finding Baker Tilly through the DevelUP™ initiative, Julian received extensive support throughout the project life cycle. Baker Tilly guided him through the tax credit application process, supported the solicitation of investor partners, and facilitated due diligence and closing procedures. Julian secured $2 million in emergency rent assistance from the City of Madison and $1.8 million from Dane County, contributing to the $17.36 million total project cost. This innovative financial approach ensures the project's long-term viability and addresses the critical need for permanent supportive housing for youth aging out of foster care.